Kevin Hassett, a seasoned economist and a trusted ally of former President Donald Trump, is emerging as a significant figure in the realm of global finance. Currently serving as the chief of the National Economic Council, Hassett is widely anticipated to succeed Jerome Powell as the chair of the US Federal Reserve. This follows President Trump’s indication that he has already selected his preferred candidate and plans to reveal the choice early next year. According to The New York Times, Trump referred to Hassett as a "potential Fed chair" and noted that the list of candidates has narrowed to one. Mark Spindel, chief investment officer at Potomac River Capital, commented on Hassett's ability to communicate complex economic concepts in a manner that aligns with Trump's style.
Trump's recent statements from Air Force One suggest he has firmly decided on his nominee. Kalshi, a prediction market, currently assigns a 74% likelihood of Hassett securing the position, with Kevin Warsh trailing at 14%. If Hassett succeeds, he will lead a Federal Reserve perceived as more politically allied with the president than any in recent memory. When questioned by Fox Business about potentially serving as Fed chair, Hassett affirmed, "Yes, I serve the president. That’s what I do."
Hassett's quick ascent is noteworthy due to his fervent advocacy for more aggressive and rapid interest rate cuts, a stance that aligns with Trump’s longstanding demands. His leadership could come at a crucial time when cryptocurrencies and other high-risk assets are closely tied to liquidity. Traditionally, Fed chairs operate independently of political influence, balancing the goals of maximizing employment and maintaining price stability. However, a dovish Fed under Hassett might inject additional funds into the financial ecosystem, potentially boosting the value of risk assets by discouraging bond investments. Critics, however, warn that this could jeopardize price stability and fuel inflation.
Jerome Powell's term, marked by frequent disagreements with Trump over interest rate policies, is set to conclude in May 2026. Hassett, known for his deep involvement in Trump’s administration, has managed the National Economic Council from the West Wing, acting as a strategic advisor on trade, tariffs, and monetary policy. The Council’s role is to coordinate both domestic and international economic policies among top officials.
During Trump’s initial presidency, Hassett led the Council of Economic Advisers and played a crucial role during the pandemic as a crisis consultant, later returning to refine policy strategies. Spindel notes Hassett’s unique ability to translate complex economic ideas into language that resonates with Trump’s communication style, and vice versa. Beyond his association with Trump, Hassett boasts a distinguished background, having spent two decades at the American Enterprise Institute, advising numerous Republican presidential campaigns, and working at Columbia Business School and the Fed’s research division in his early career.
Treasury Secretary Scott Bessent has concluded the interview process and is expected to soon present his formal recommendation. Trump plans to announce his decision in early 2026.